Speculators – thermostats or thermometers?

(Disclaimer : I am not nor have I ever been a speculator. I do have an MBA in Economics (minor Finance) but have never worked in either an economic or financial position.)

I have been troubled for many years by allegations made by politicians, some economists and financial writers that the actions of speculators are the cause of the rise in prices – especially oil. I have spoken to and corresponded with such people in an effort to ascertain whether their statements are true. So far, the best response I got was an “appeal to authority” by a New York papers financial columnist.

For any “trolls” reading this diary, let me explain the difference between a thermostat and a thermometer. A thermostat is a device that is used to regulate temperature. A thermometer is a device that shows the themperature.